Student Exam 1. If the sum of squared error variation of a variable Y is 28.95 and the sum of squared total variation of the regression is 290.60 the R square value for the regression is:(Points : 3) 11.9 99.5 88.1 78.3 90 Student Exam The following study estimated demand equation for illicit drugs using a sample size of 4000. The significance level desired for the regression is 5%. The regression output is (Y= Number of days illicit drugs are used): Variable Coefficient Estimate t-Value Intercept 3.089 17.98 Alcohol Prices per liter 0.045 5.93 Income ($1000) 0.000057 17.45 Male (1 if male) 1.637 29.23 Female (1 if female) 1.282 6.35 Marital Status (1 if married) -0.807 1.13 Age 12 to 20 (1 if between 12 & 20) -1.531 17.97 Age 21 to 30 (1 if between 21 & 30) .035 0.51 Black (1 if Black) .580 1.84 Hispanic (1 if Hispanic) -0.564 -1.03 Years in prison for felony drug possession -0.532 -4.72 Which of the above variables would you not keep in the regression?(Points : 3) Discard only variables with negative t-values (Hispanic and Years in prison). Delete Marital Status, Age21-30, Black, and Hispanic. Discard Female. 2 and 3 above. Keep all of the variables. Student Exam 15. Given the following information below derived from a regression with 200 data observations for each variable are the independent variable coefficients significantly different from zero? Variable Coefficient Std. Error t-values Constant 564 897 X1 749 638 X2 .683 .339 (Points : 3) X1 and X2 are not significantly different from zero. X2 is significantly different from zero while X1 is not. X1 is significantly different from zero while X2 is not. Both X variables are significant. Student Exam 16. What statistic can be used to develop a forecast confidence interval around the forecast values?(Points : 3) Standard deviation of the Y data Standard Error of the Coefficient Standard Error of the Estimate F statistic SST